Intrinsic value of Becton, Dickinson and Company - BDX

Previous Close

$254.35

  Intrinsic Value

$378.34

stock screener

  Rating & Target

buy

+49%

Previous close

$254.35

 
Intrinsic value

$378.34

 
Up/down potential

+49%

 
Rating

buy

We calculate the intrinsic value of BDX stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 0001), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 68.4

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
   2
   3
   4
   5
   6
   7
   8
   9
   10
   11
   12
   13
   14
   15
   16
   17
   18
   19
   20
   21
   22
   23
   24
   25
   26
   27
   28
   29
   30
   31

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  35.10
  32.09
  29.38
  26.94
  24.75
  22.77
  21.00
  19.40
  17.96
  16.66
  15.50
  14.45
  13.50
  12.65
  11.89
  11.20
  10.58
  10.02
  9.52
  9.07
  8.66
  8.29
  7.96
  7.67
  7.40
  7.16
  6.94
  6.75
  6.58
  6.42
Revenue, $m
  21,593
  28,522
  36,902
  46,845
  58,438
  71,747
  86,811
  103,650
  122,262
  142,633
  164,734
  188,531
  213,985
  241,056
  269,708
  299,908
  331,631
  364,860
  399,587
  435,814
  473,553
  512,827
  553,669
  596,123
  640,242
  686,089
  733,736
  783,266
  834,768
  888,341
Variable operating expenses, $m
  17,553
  21,901
  27,160
  33,398
  40,673
  49,024
  58,476
  69,042
  80,721
  93,503
  103,367
  118,299
  134,271
  151,257
  169,236
  188,186
  208,091
  228,941
  250,732
  273,463
  297,144
  321,787
  347,415
  374,054
  401,737
  430,505
  460,403
  491,482
  523,798
  557,414
Fixed operating expenses, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  17,553
  21,901
  27,160
  33,398
  40,673
  49,024
  58,476
  69,042
  80,721
  93,503
  103,367
  118,299
  134,271
  151,257
  169,236
  188,186
  208,091
  228,941
  250,732
  273,463
  297,144
  321,787
  347,415
  374,054
  401,737
  430,505
  460,403
  491,482
  523,798
  557,414
Operating income, $m
  4,040
  6,621
  9,743
  13,447
  17,766
  22,723
  28,335
  34,608
  41,541
  49,130
  61,367
  70,232
  79,714
  89,799
  100,472
  111,722
  123,540
  135,919
  148,855
  162,350
  176,409
  191,039
  206,254
  222,069
  238,504
  255,583
  273,333
  291,784
  310,970
  330,927
EBITDA, $m
  9,586
  12,662
  16,383
  20,797
  25,944
  31,852
  38,540
  46,015
  54,278
  63,322
  73,134
  83,699
  94,999
  107,017
  119,737
  133,144
  147,228
  161,980
  177,397
  193,480
  210,234
  227,670
  245,802
  264,649
  284,236
  304,590
  325,743
  347,732
  370,596
  394,380
Interest expense (income), $m
  435
  1,161
  1,782
  2,552
  3,483
  4,588
  5,876
  7,354
  9,028
  10,898
  12,966
  15,229
  17,684
  20,328
  23,155
  26,163
  29,346
  32,701
  36,225
  39,916
  43,774
  47,799
  51,991
  56,354
  60,891
  65,607
  70,509
  75,602
  80,895
  86,397
  92,119
Earnings before tax, $m
  2,879
  4,839
  7,191
  9,964
  13,178
  16,848
  20,981
  25,580
  30,643
  36,164
  46,138
  52,548
  59,387
  66,643
  74,310
  82,377
  90,839
  99,694
  108,939
  118,576
  128,610
  139,048
  149,900
  161,178
  172,897
  185,075
  197,731
  210,889
  224,572
  238,808
Tax expense, $m
  777
  1,306
  1,941
  2,690
  3,558
  4,549
  5,665
  6,907
  8,274
  9,764
  12,457
  14,188
  16,034
  17,994
  20,064
  22,242
  24,527
  26,917
  29,413
  32,016
  34,725
  37,543
  40,473
  43,518
  46,682
  49,970
  53,387
  56,940
  60,635
  64,478
Net income, $m
  2,102
  3,532
  5,249
  7,273
  9,620
  12,299
  15,316
  18,674
  22,370
  26,400
  33,681
  38,360
  43,352
  48,650
  54,246
  60,135
  66,313
  72,776
  79,525
  86,561
  93,886
  101,505
  109,427
  117,660
  126,215
  135,105
  144,344
  153,949
  163,938
  174,330

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  72,704
  96,034
  124,250
  157,727
  196,762
  241,572
  292,294
  348,989
  411,658
  480,245
  554,660
  634,785
  720,488
  811,637
  908,108
  1,009,791
  1,116,603
  1,228,485
  1,345,410
  1,467,386
  1,594,453
  1,726,689
  1,864,206
  2,007,148
  2,155,697
  2,310,063
  2,470,492
  2,637,258
  2,810,665
  2,991,047
Adjusted assets (=assets-cash), $m
  72,704
  96,034
  124,250
  157,727
  196,762
  241,572
  292,294
  348,989
  411,658
  480,245
  554,660
  634,785
  720,488
  811,637
  908,108
  1,009,791
  1,116,603
  1,228,485
  1,345,410
  1,467,386
  1,594,453
  1,726,689
  1,864,206
  2,007,148
  2,155,697
  2,310,063
  2,470,492
  2,637,258
  2,810,665
  2,991,047
Revenue / Adjusted assets
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
  0.297
Average production assets, $m
  24,832
  32,801
  42,438
  53,872
  67,204
  82,509
  99,833
  119,197
  140,602
  164,028
  189,444
  216,811
  246,083
  277,215
  310,164
  344,894
  381,376
  419,589
  459,525
  501,186
  544,586
  589,751
  636,719
  685,541
  736,278
  789,002
  843,797
  900,756
  959,983
  1,021,592
Working capital, $m
  2,095
  2,767
  3,580
  4,544
  5,669
  6,959
  8,421
  10,054
  11,859
  13,835
  15,979
  18,288
  20,757
  23,382
  26,162
  29,091
  32,168
  35,391
  38,760
  42,274
  45,935
  49,744
  53,706
  57,824
  62,103
  66,551
  71,172
  75,977
  80,972
  86,169
Total debt, $m
  33,007
  47,262
  64,502
  84,956
  108,807
  136,186
  167,177
  201,817
  240,108
  282,015
  327,482
  376,439
  428,803
  484,495
  543,439
  605,567
  670,829
  739,189
  810,630
  885,158
  962,796
  1,043,592
  1,127,615
  1,214,953
  1,305,716
  1,400,034
  1,498,056
  1,599,950
  1,705,901
  1,816,114
Total liabilities, $m
  44,422
  58,677
  75,917
  96,371
  120,222
  147,601
  178,592
  213,232
  251,523
  293,430
  338,897
  387,854
  440,218
  495,910
  554,854
  616,982
  682,244
  750,604
  822,045
  896,573
  974,211
  1,055,007
  1,139,030
  1,226,368
  1,317,131
  1,411,449
  1,509,471
  1,611,365
  1,717,316
  1,827,529
Total equity, $m
  28,282
  37,357
  48,333
  61,356
  76,541
  93,972
  113,702
  135,757
  160,135
  186,815
  215,763
  246,931
  280,270
  315,727
  353,254
  392,809
  434,359
  477,881
  523,364
  570,813
  620,242
  671,682
  725,176
  780,781
  838,566
  898,615
  961,022
  1,025,893
  1,093,349
  1,163,517
Total liabilities and equity, $m
  72,704
  96,034
  124,250
  157,727
  196,763
  241,573
  292,294
  348,989
  411,658
  480,245
  554,660
  634,785
  720,488
  811,637
  908,108
  1,009,791
  1,116,603
  1,228,485
  1,345,409
  1,467,386
  1,594,453
  1,726,689
  1,864,206
  2,007,149
  2,155,697
  2,310,064
  2,470,493
  2,637,258
  2,810,665
  2,991,046
Debt-to-equity ratio
  1.170
  1.270
  1.330
  1.380
  1.420
  1.450
  1.470
  1.490
  1.500
  1.510
  1.520
  1.520
  1.530
  1.530
  1.540
  1.540
  1.540
  1.550
  1.550
  1.550
  1.550
  1.550
  1.550
  1.560
  1.560
  1.560
  1.560
  1.560
  1.560
  1.560
Adjusted equity ratio
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389
  0.389

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  2,102
  3,532
  5,249
  7,273
  9,620
  12,299
  15,316
  18,674
  22,370
  26,400
  33,681
  38,360
  43,352
  48,650
  54,246
  60,135
  66,313
  72,776
  79,525
  86,561
  93,886
  101,505
  109,427
  117,660
  126,215
  135,105
  144,344
  153,949
  163,938
  174,330
Depreciation, amort., depletion, $m
  5,546
  6,041
  6,640
  7,350
  8,178
  9,129
  10,205
  11,408
  12,737
  14,192
  11,767
  13,467
  15,285
  17,218
  19,265
  21,422
  23,688
  26,061
  28,542
  31,130
  33,825
  36,630
  39,548
  42,580
  45,732
  49,006
  52,410
  55,948
  59,626
  63,453
Funds from operations, $m
  7,648
  9,574
  11,889
  14,624
  17,798
  21,428
  25,521
  30,081
  35,107
  40,592
  45,448
  51,827
  58,637
  65,868
  73,511
  81,557
  90,001
  98,838
  108,067
  117,690
  127,711
  138,136
  148,975
  160,240
  171,946
  184,111
  196,754
  209,897
  223,564
  237,783
Change in working capital, $m
  544
  672
  813
  964
  1,125
  1,291
  1,461
  1,633
  1,805
  1,976
  2,144
  2,308
  2,469
  2,626
  2,779
  2,929
  3,077
  3,223
  3,369
  3,514
  3,661
  3,810
  3,962
  4,118
  4,280
  4,447
  4,622
  4,804
  4,996
  5,197
Cash from operations, $m
  7,104
  8,902
  11,076
  13,659
  16,674
  20,137
  24,060
  28,448
  33,301
  38,616
  43,304
  49,518
  56,168
  63,242
  70,732
  78,628
  86,924
  95,615
  104,699
  114,176
  124,050
  134,326
  145,013
  156,122
  167,667
  179,664
  192,132
  205,092
  218,568
  232,586
Maintenance CAPEX, $m
  -1,142
  -1,542
  -2,037
  -2,636
  -3,346
  -4,174
  -5,125
  -6,201
  -7,404
  -8,733
  -10,188
  -11,767
  -13,467
  -15,285
  -17,218
  -19,265
  -21,422
  -23,688
  -26,061
  -28,542
  -31,130
  -33,825
  -36,630
  -39,548
  -42,580
  -45,732
  -49,006
  -52,410
  -55,948
  -59,626
New CAPEX, $m
  -6,451
  -7,969
  -9,637
  -11,434
  -13,332
  -15,305
  -17,324
  -19,364
  -21,404
  -23,426
  -25,416
  -27,367
  -29,272
  -31,132
  -32,949
  -34,730
  -36,481
  -38,213
  -39,936
  -41,661
  -43,400
  -45,165
  -46,969
  -48,822
  -50,737
  -52,724
  -54,795
  -56,959
  -59,227
  -61,609
Cash from investing activities, $m
  -7,593
  -9,511
  -11,674
  -14,070
  -16,678
  -19,479
  -22,449
  -25,565
  -28,808
  -32,159
  -35,604
  -39,134
  -42,739
  -46,417
  -50,167
  -53,995
  -57,903
  -61,901
  -65,997
  -70,203
  -74,530
  -78,990
  -83,599
  -88,370
  -93,317
  -98,456
  -103,801
  -109,369
  -115,175
  -121,235
Free cash flow, $m
  -489
  -609
  -598
  -411
  -5
  658
  1,611
  2,883
  4,493
  6,457
  7,699
  10,385
  13,429
  16,826
  20,564
  24,633
  29,020
  33,714
  38,701
  43,973
  49,521
  55,336
  61,414
  67,752
  74,350
  81,208
  88,331
  95,724
  103,394
  111,351
Issuance/(repayment) of debt, $m
  11,512
  14,255
  17,240
  20,454
  23,851
  27,379
  30,991
  34,641
  38,290
  41,907
  45,468
  48,956
  52,365
  55,692
  58,943
  62,129
  65,262
  68,360
  71,441
  74,527
  77,638
  80,796
  84,022
  87,338
  90,763
  94,318
  98,022
  101,894
  105,952
  110,213
Issuance/(repurchase) of shares, $m
  5,186
  5,543
  5,727
  5,749
  5,565
  5,132
  4,415
  3,381
  2,008
  281
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  16,698
  19,798
  22,967
  26,203
  29,416
  32,511
  35,406
  38,022
  40,298
  42,188
  45,468
  48,956
  52,365
  55,692
  58,943
  62,129
  65,262
  68,360
  71,441
  74,527
  77,638
  80,796
  84,022
  87,338
  90,763
  94,318
  98,022
  101,894
  105,952
  110,213
Total cash flow (excl. dividends), $m
  16,209
  19,189
  22,369
  25,793
  29,410
  33,169
  37,016
  40,905
  44,792
  48,645
  53,167
  59,341
  65,794
  72,518
  79,507
  86,761
  94,282
  102,073
  110,143
  118,501
  127,159
  136,132
  145,437
  155,090
  165,113
  175,526
  186,353
  197,617
  209,345
  221,564
Retained Cash Flow (-), $m
  -7,288
  -9,076
  -10,976
  -13,022
  -15,185
  -17,431
  -19,731
  -22,055
  -24,378
  -26,681
  -28,947
  -31,168
  -33,339
  -35,457
  -37,527
  -39,555
  -41,550
  -43,522
  -45,484
  -47,449
  -49,429
  -51,440
  -53,494
  -55,605
  -57,785
  -60,049
  -62,407
  -64,872
  -67,455
  -70,168
Prev. year cash balance distribution, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
  8,921
  10,113
  11,393
  12,770
  14,226
  15,738
  17,286
  18,850
  20,414
  21,964
  24,220
  28,173
  32,455
  37,061
  41,980
  47,206
  52,732
  58,551
  64,659
  71,052
  77,730
  84,692
  91,943
  99,486
  107,328
  115,478
  123,946
  132,746
  141,890
  151,395
Discount rate, %
  8.00
  8.40
  8.82
  9.26
  9.72
  10.21
  10.72
  11.26
  11.82
  12.41
  13.03
  13.68
  14.37
  15.09
  15.84
  16.63
  17.46
  18.34
  19.25
  20.22
  21.23
  22.29
  23.40
  24.57
  25.80
  27.09
  28.45
  29.87
  31.36
  32.93
PV of cash for distribution, $m
  8,261
  8,607
  8,841
  8,961
  8,945
  8,782
  8,474
  8,030
  7,469
  6,818
  6,295
  6,046
  5,667
  5,184
  4,626
  4,027
  3,418
  2,828
  2,279
  1,788
  1,365
  1,013
  730
  510
  346
  227
  144
  88
  52
  30
Current shareholders' claim on cash, %
  93.0
  87.7
  83.7
  80.8
  78.6
  77.0
  75.9
  75.2
  74.9
  74.9
  74.9
  74.9
  74.9
  74.9
  74.9
  74.9
  74.9
  74.9
  74.9
  74.9
  74.9
  74.9
  74.9
  74.9
  74.9
  74.9
  74.9
  74.9
  74.9
  74.9

Becton, Dickinson and Company (BD) is a global medical technology company engaged in the development, manufacture and sale of a range of medical supplies, devices, laboratory equipment and diagnostic products. The Company operates through two segments: BD Medical and BD Life Sciences. The BD Medical segment produces an array of medical technologies and devices that are used to help improve healthcare delivery in a range of settings. BD Medical consists of various business units, including diabetes care, medication and procedural solutions, medication management solutions and pharmaceutical systems. The BD Life Sciences segment provides products for the safe collection and transport of diagnostics specimens, and instruments and reagent systems to detect a range of infectious diseases, healthcare-associated infections and cancers. The Company's BD Life Sciences segment consists of various business units, including preanalytical systems, diagnostic systems and biosciences.

FINANCIAL RATIOS  of  Becton, Dickinson and Company (BDX)

Valuation Ratios
P/E Ratio 52.7
Price to Sales 4.8
Price to Book 4.5
Price to Tangible Book
Price to Cash Flow 22.7
Price to Free Cash Flow 31.8
Growth Rates
Sales Growth Rate -3.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 1.3%
Cap. Spend. - 3 Yr. Gr. Rate 2.2%
Financial Strength
Quick Ratio 70
Current Ratio 0
LT Debt to Equity 144.2%
Total Debt to Equity 145.7%
Interest Coverage 3
Management Effectiveness
Return On Assets 5%
Ret/ On Assets - 3 Yr. Avg. 5.1%
Return On Total Capital 4.3%
Ret/ On T. Cap. - 3 Yr. Avg. 4.7%
Return On Equity 10.7%
Return On Equity - 3 Yr. Avg. 11.8%
Asset Turnover 0.4
Profitability Ratios
Gross Margin 49.1%
Gross Margin - 3 Yr. Avg. 47.6%
EBITDA Margin 20.7%
EBITDA Margin - 3 Yr. Avg. 20.1%
Operating Margin 11.6%
Oper. Margin - 3 Yr. Avg. 11.2%
Pre-Tax Margin 8.1%
Pre-Tax Margin - 3 Yr. Avg. 8%
Net Profit Margin 9.1%
Net Profit Margin - 3 Yr. Avg. 7.9%
Effective Tax Rate -12.7%
Eff/ Tax Rate - 3 Yr. Avg. 0.8%
Payout Ratio 61.5%

BDX stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the BDX stock intrinsic value calculation we used $15983 million for the last fiscal year's total revenue generated by Becton, Dickinson and Company. The default revenue input number comes from 0001 income statement of Becton, Dickinson and Company. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our BDX stock valuation model: a) initial revenue growth rate of 35.1% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 8%, whose default value for BDX is calculated based on our internal credit rating of Becton, Dickinson and Company, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Becton, Dickinson and Company.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of BDX stock the variable cost ratio is equal to 87.8%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for BDX stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 5.4% for Becton, Dickinson and Company.

Corporate tax rate of 27% is the nominal tax rate for Becton, Dickinson and Company. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the BDX stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for BDX are equal to 115%.

Life of production assets of 16.1 years is the average useful life of capital assets used in Becton, Dickinson and Company operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for BDX is equal to 9.7%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $20994 million for Becton, Dickinson and Company - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 269.061 million for Becton, Dickinson and Company is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Becton, Dickinson and Company at the current share price and the inputted number of shares is $68.4 billion.

RELATED COMPANIES Price Int.Val. Rating
HOLX Hologic, Inc. 50.07 28.02  sell
BIO Bio-Rad Labora 325.46 63.05  str.sell

CONTACT US      

About X-FIN       Privacy policy       Terms of use      

Copyright © X-FIN.com 2005-2019. All rigths reserved.